Sales at US retailers rose a slightly more-than-expected 0.3 per cent in July and were even stronger once car and gasoline sales were stripped out, Commerce Department data showed today.
Excluding vehicles, retail sales gained 0.4 per cent in July as forecast and the prior month was revised to a 0.2 per cent decline versus a 0.4 per cent fall initially reported.
Stock index futures extended gains, the dollar pared losses against the yen and the prices on US government treasury bonds retreated after the data eased concerns over slowing US growth and the health of the consumer.
Purchases of motor vehicles and parts, which make up around one-fifth of total sales, fell 0.3 per cent. Petrol fell 0.8 per cent.
Economists had also expected a strong US jobs market to support consumption, despite the impact of cooling US housing and turmoil caused by problems in the market for subprime mortgages for borrowers with risky credit.
In fact, furniture and home furnishings sales rose 0.5 per cent and building material and garden supplies were up 0.2 per cent. Sales of clothing and accessories jumped 1.3 per cent, while sales at food and beverage stores, health and personal care also advanced.